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Build a house (loan?)

MH3

Hey guys! Quick question about building a house.


We own land, but the banks we鈥檝e talked to don鈥檛 do mortgages for new construction like in the U.S. They say the only way is through a 鈥渂uilder,鈥 where the house is already built, and then they can give a loan. Based on my understanding this wouldn鈥檛 work if we already own the land?


So how do people usually go about building a house if they already have the land? Obviously there鈥檚 building in stages which we rather not do. Any other loan we can get? Or builders? Idk really.


Any advice or personal experiences would be super helpful!

See also

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planner

They usually build in stages.聽 Or, get a loan back home and build here.

Tippj

Sometimes it鈥檚 better to build in stages , if you have 鈥 all 鈥 the materials on site you have more of a chance of theft at night , plus you can go over all the work after each completion of stages , if you don鈥檛 like something that was installed you can change it before the contractor moves on to the next stage ,聽 鈥渉e can鈥檛 say you should have told me earlier聽 , I can鈥檛 change now 鈥 , plus you can actually account for the amount of material ordered and amount used without being overwhelmed by the amount of materials , and merchandise on site , all jobs are done in stages plan for every aspect but order as needed ,

Papito NL

Good advice is already mentioned. Even when possible, loans are very expensive in the DR, normal mortgages already have around 14% interest rate. You will also need onsite presence or, like they say, you will build two houses and one is yours.

DRforme

First you need to decide if you are going to build your home with a builder/contractor for basically a turnkey home. Or will you be going the subcontractor route where you do the hiring for each phase of the build. But like anything else there are pros and cons to each one. I have built two homes utilizing both ways and neither one was without headaches. As was mentioned you definitely need to be on site during construction to ensure that you are getting exactly what you鈥檙e paying for. Shortcuts and it鈥檚 good enough are commonplace when nobody is watching. You will also need to consider security once you reach a certain point of the build. Most builders will have someone live in the house while under construction to deter any opportunistic activity. My best advice would be to not start a home build unless you can finish it as quickly as possible to completion.

planner

Poor聽 guy has not even got the money yet!聽 馃榾


Some great general building info in this thread!聽 聽

classygringo

Im glad this thread was started. I have a house that needs to be torn down and rebuild new but I was concerned with a lot of people walking by and that materials may go missing. I can build

quickly but concerned about trying to build

new without issues. Property is about 45 minutes from where I live so I won't be able to watch over it.

MH3

I think I should have clarified in the post 鈥渨e don鈥檛 have the money to build it right away.鈥 We need a loan period. So how would we go about getting a loan (mortgage) if in DR it鈥檚 not like US where they鈥檇 loan the entirety of the money needed to build the house?

Tippj

@classygringo

You could hire a night watchmen , they usually come with a long gun , and the ones I talked to get about 500 pesos for the night , usually it鈥檚 a side gig for them聽 , hire them till the premises could be closed in and secure

planner

@MH3

Reality is it won't be at a bank.聽 Secondary market at high rates.